Exporters ask the Government to eliminate the ISD of logistics costs and to comply with the 'drawback'

The drawback was implemented in 2015, but then it was discontinued until it was included in 2019 in the Tax Simplification and Progressive Law

Although non -oil exports show a 12 % growth in the first half of this year, there is concern in the export sector for the almost zero growth in traditional products, such as bananas, cocoa and others; Since the good performance of 2021 is more signed in non -traditional products, such as fruits and canned, which reached an increase of around 20 %, on average.

This was analyzed on WednesdayFelipe Ribadeneira, Executive President of the Ecuadorian Federation of Exporters (FEDEXPOR), during a conversation with media in Guayaquil.

Regarding the causes of the downturn of traditional products, he explained that it is due to the decrease in consumption capacity in homes worldwide, which has generated a price war that forces products to be as competitive as possible, because the prices of that basket are fixed by the international market through supply and demand.

In the case of bananas, Richard Salazar, president of the Banano Marketing and Export Association (ACORBENEC)He indicated that in the case of the banana they have had a 4.6 % reduction in exports in this first semester due to climatic factors, but also to increases in export costs and expenses such as cardboard and plastics.

In this regard, Ribadeneira confirmed that there is a significant increase in logistics costs, so it indicated that it is important that the government advances in a second stage of tariff regulations in which more raw materials and supplies are incorporated that help produce in Ecuador.

He pointed out that there are more than600 tariff gamesthat can still be reviewed and there are about 180 that were not taken into consideration in the first regulation and have tariffs that averaged 90 %. "We cannot move those internal costs to the prices of our products, because we have competencies," said the leader, who said that he has seen with "much pleasure" the exemption of the tax on the output of currencies (ISD) on flights, but indicated that "it is already time for an additional jump in logistics issues that affect the export sector."

He referred specifically to withdraw the ISD to the logistics part: freight, insurance and above all the navier freight, where there are costs that remain competitiveness. He added that the export sector pays around $ 500 million in capital goods tariffs and foreign exchange tax.

"We do not see that fiscal sacrifice that can be made in a decrease in ISD that would help increase non -oil exports," said Ribadeneira, who pointed out that he generated concern that in the proforma presented by the Ministry of Finance to the National Assembly, for example, such necessary aspects such as thedrawback(Automatic tax return) "which is in an established law, has a mechanism, but there is no budget."

The mechanism consists of theSimplification and tax progressivity law,published on December 31, 2019 through the first supplement to the Official Registry No. 111, and in force since January 1, 2020.

However, the mechanism had already been presented in June 2015 and according to the government of the time (by Rafael Correa) it was planned to deliver in 12 months$ 250 millionTo exporters.

This, after in March of that year theForeign Trade Committee (Comex)approved the percentages of between 2 % and 5 % tax return for exporters of non -traditional goods such as flowers, bananas, tuna, cocoa, broccoli, coffee, among others.

By October 2017, Fedexpor, through its president,Daniel Legarda, today Vice Minister of Foreign Trade, said that the Government owed to the export sector more than $ 100 million for thedrawback, generated in 2015, the year in which the mechanism was active.

However, when consulted by Diario El Universo, Ribadeneira said Tuesday that “there is no debt, the debt exists in the regulations, in the lack of compliance in the law” and indicated that the export sector seeks to establish and analyze this regulation so that the State complies with the provisions of Ecuadorian legislation.

Meanwhile, another of the advertisements made by the sector was the reactivation of the PremioExport, after it was not developed in 2020 by the Covid-19 pandemic. This year, the tenth edition will take place on Thursday, November 25.

Xavier Rosero, vice president of Fedexpor,He indicated that the application has no cost, the companies exporting goods and services that operate in Ecuador may participate. These will be received until Friday, October 15 of the current year. The conditions and requirements to participate, as well as the qualification criteria, are available inwww.premioexpor.com.

In addition, in this edition Rosero said that they want to assess the resilient capacity of exporting companies to adapt to this new reality in a more demanding market, so there will be new recognitions such as employment generation and sustainability, leader in market diversification, leader in product diversification, export social responsibility, among others.